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Human Capital Externalities and Private Returns to Education in Kenya

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Author Info

  • Damiano Kulundu Manda

    (Kenya Institute for Public Policy Analysis (KIPPRA))

  • Germano Mwabu

    (Kenya Institute for Public Policy Analysis (KIPPRA))

  • Mwangi S. Kimenyi

    (University of Connecticut)

Abstract

We use micro data to analyse the effect of human capital externality on earnings and private returns to education. The earnings equations are estimated using the OLS method for a sample of full-time workers. The results show that human capital has a positive effect on earnings, indicating that an increase in education benefits all workers. However, men benefit more from women's education than the women do from men's. The effects of human capital externality on private returns to schooling are shown to vary substantially between rural and urban areas and across levels of the education system.

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Bibliographic Info

Paper provided by University of Connecticut, Department of Economics in its series Working papers with number 2004-08.

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Length: 32 pages
Date of creation: Apr 2004
Date of revision:
Handle: RePEc:uct:uconnp:2004-08

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Postal: University of Connecticut 341 Mansfield Road, Unit 1063 Storrs, CT 06269-1063
Phone: (860) 486-4889
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Web page: http://www.econ.uconn.edu/
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Keywords: Human capital externality; returns to education; earnings; Kenya;

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References

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  1. George Psacharopoulos, 1985. "Returns to Education: A Further International Update and Implications," Journal of Human Resources, University of Wisconsin Press, vol. 20(4), pages 583-604.
  2. Card, David, 1999. "The causal effect of education on earnings," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 30, pages 1801-1863 Elsevier.
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  21. repec:fth:prinin:317 is not listed on IDEAS
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Cited by:
  1. Sonia Laszlo, 2005. "Self-employment earnings and returns to education in rural Peru," Journal of Development Studies, Taylor & Francis Journals, vol. 41(7), pages 1247-1287.
  2. Rob Vos & Arjun Bedi & Paul K. Kimalu & Damiano K. Manda & Nancy N. Nafula & Mwangi S. Kimenyi, 2004. "Achieving Universal Primary Education: Can Kenya Afford it?," Working papers 2004-47, University of Connecticut, Department of Economics.
  3. World Bank, 2009. "Kenya - Poverty and Inequality Assessment : Executive Summary and Synthesis Report," World Bank Other Operational Studies 3081, The World Bank.
  4. Bansha Dulal, H. & Foa, R., 2011. "Social Institutions as a Form of Intangible Capital," ISD Working Paper Series 2011-01, International Institute of Social Studies of Erasmus University Rotterdam (ISS), The Hague.
  5. Ogundari, Kolawole, 2012. "Returns to Education Revisited and Effects of Education on Household Welfare in Nigeria," 2012 Conference, August 31, 2012, Nelson, New Zealand 136051, New Zealand Agricultural and Resource Economics Society.

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